Sunday, August 11, 2013

Arizona potash companies say "don't panic"

Like it says on the back cover of "The Hitchhiker's Guide to the Galaxy," don't panic! The apparent collapse of the BPC potash cartel and the resulting dramatic fall of world potash prices has sent the commodities markets into massive uncertainty and raised questions about the financing and viability of proposed potash projects worldwide.

But the heads of Passport Potash and Prospect Global Resources, two companies actively exploring Arizona's Holbrook basin, say it's too early to write off projects such as theirs, with low capitalization costs, established infrastructure, a stable political and economic environment, and ready access to major markets.

Passport Chairman David Salisbury said in an interview with Potash Investing News that the world still needs to fill an estimated 15 million tonne per year global need for potash from new and expanded mines, “But in all cases it will be the lowest cost producers that are going to be able to survive in that market.”

The Arizona Journalquotes Damon Barber, CEO of PGR, "Based on our recent pre-feasibility study, our Holbrook project is
designed to produce 1.4 million tons per year and has the lowest
estimated capital cost per ton of production of any greenfield project.”